From the second week of December, the Nationwide Building Society will be making 90% loan to value (LTV) loans available for house purchase and for existing mortgage members.
The move will provide them with the same access to 90% LTV home loans as first-time buyers.
People will be able to borrow up to £500,000 over a maximum 25-year term, with rates aligned with those on offer to first-time buyers at 90% LTV, including 3.49% for a two-year fixed mortgage with a product fee of £999.
As has been the case throughout the pandemic, existing mortgage members are able to borrow up to 95% on a like-for-like LTV basis, with no LTV restrictions on those looking to switch deals and rates priced the same or better than new business equivalents.
Nationwide re-entered the 90% market in July with temporary, but necessary, criteria in place to protect service and lend responsibly.
The building society will once again allow fully gifted deposits at 90% LTV from the second week of December, aligning to standard policy and expanding the level of support parents can provide to their family.
In the six months to 30 September 2020, Nationwide helped 21,000 first-time homeowners buy their own home – equivalent to one in six of all first-time buyers. All of the Society’s 90% LTV mortgages are available directly with Nationwide (telephone and online) as well as via brokers.
Henry Jordan, director of mortgages at Nationwide Building Society, said: “Nationwide was founded to help people into homes of their own and that remains the case as much today as it did 135 years ago. As a mutual, owned by our members, we aim to balance supporting first-time buyers into a home of their own with the need to lend responsibly. Given the uncertainty created by the pandemic, our re-entry into 90% LTV lending back in July was deliberately cautious and included enhanced criteria.
“Four months on, we are increasingly confident in our approach and so are delighted to be able to expand our support for the market to include home movers whilst removing some of the temporary criteria for first-time buyers, making it easier for parents to help them take their first step onto the housing ladder.”